The Director General, Nigeria Civil Aviation Authority, Captain Chris Najomo, has called on aviation insurers to strengthen compliance, resilience and alignment with global best practices to safeguard Nigeria’s skies.
He made the call at the Aviation Insurance Compliance and Financing Technical Awareness Summit, with the theme “Securing the Skies: Navigating Aviation Insurance and Aircraft Finance Safeguards,” hosted by the Directorate of Air Transport Regulations (DATR), in Lagos.
Represented by the Director of Air Transport Regulations, Mrs. Olayinka Babaoye-Iriobe, Captain Najomo said the industry must carefully manage the transition to new insurance frameworks without disrupting existing contracts, lease agreements or loan covenants.
He stressed the need to harmonize safety oversight with financial indemnity obligations and to provide clear guidance on reinsurance arrangements involving foreign insurers.
Delivering the keynote address, the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, said airlines must run transparent and fully compliant insurance programmes, while insurers are expected to provide adequate capacity, competitive products and world-class risk management.
The Minister represented by Mrs. Gold Bridget of FAAN, added that lessors and financiers must remain confident in Nigeria as a stable investment destination, noting that regulators must work in close coordination and maintain proactive communication.
A major focus of discussions was the dilemma faced by Nigerian airlines required to comply with local content insurance policies, while aircraft lessors insist on international cover, often through firms such as Lloyd’s of London.
At the summit, Director, Inspectorate, National Insurance Commission, NAICOM, Bankole Ajibola, outlined new prudential guidelines, including limits on risk retention, stricter authorization for aviation insurance placements, compliance with international financial ratings and tighter reporting timelines.
Meanwhile, the Chief Operating Officer of one of the airlines, Mazi Osita Okonkwo, said Nigeria’s insurance market currently lacks the capacity to underwrite high-risk, large-body aircraft, a development he warned is stunting growth in the sector.
He called for liberalization of the insurance market, drawing parallels with reforms that transformed Nigeria’s banking industry into globally competitive institutions.
Participants at the summit also agreed that aircraft safety depends more on maintenance than age, urging regulators and the aviation ministry to review Nigeria’s current 22-year age limit for commercial aircraft operations.
Reporting By Nosa Aituamen